Classic Company is interested in establishing the relationship between utility costs and machine hours. Data has been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow:
Required:

a. Perform a regression analysis on the above data and generate a summary output. 

b. What is the equation for utility costs using the regression analysis?

c. Prepare an estimate of utility costs for a month when 3,000 machine hours are worked.

Transcribed Image Text:

Month January 2021 February 2021 March 2021 April 2021 May 2021 June 2021 July 2021 August 2021 September 2021 October 2021 November 2021 December 2021 January 2022 February 2022 March 2022 Machine Hours 2,470 5,330 4,810 3,250 5,460 3,770 4,940 4,030 6,110 2,600 4.550 4,290 6,450 3,175 2.785 Electricity Costs 16,200 29,700 31,200 22,080 33,300 25,200 33,900 27,600 37,200 18,600 27,300 26,400 38,900 26,5 18,500 Month January 2021 February 2021 March 2021 April 2021 May 2021 June 2021 July 2021 August 2021 September 2021 October 2021 November 2021 December 2021 January 2022 February 2022 March 2022 Machine Hours 2,470 5,330 4,810 3,250 5,460 3,770 4,940 4,030 6,110 2,600 4.550 4,290 6,450 3,175 2.785 Electricity Costs 16,200 29,700 31,200 22,080 33,300 25,200 33,900 27,600 37,200 18,600 27,300 26,400 38,900 26,5 18,500

Answer rating: 100% (QA)

SUMMARY OUTPUT Regression Statistics Multiple R 0957069686 R Squ... View the full answer